Premium
NETWORKS, INNOVATION AND REGULATION
Author(s) -
Smith Stephen
Publication year - 2010
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/j.1468-0270.2010.02002.x
Subject(s) - monopoly , incentive , investment (military) , industrial organization , business , reliability (semiconductor) , natural monopoly , economics , energy (signal processing) , economic system , market economy , power (physics) , political science , law , statistics , physics , mathematics , quantum mechanics , politics
The design and operation of Britain's energy networks have not changed significantly in 50 years. Energy networks will have a central role to play in decarbonising the economy. Unprecedented levels of technical and commercial innovation are likely to be necessary. The existing incentive‐based approach to regulating the monopoly networks has been a success in lowering prices whilst delivering investment and improved reliability. But it will need to change to encourage and reward these levels of innovation. This paper sets out some of the regulators' thinking on the changes required.